WASHINGTON, July 11, 2002 - Agriculture Secretary Ann M. Veneman
today approved 18 states for Conservation Reserve Program emergency
haying and grazing statewide, making all CRP participants in these
states basically eligible for this emergency measure. Veneman also said
USDA will waive rental reduction fees to encourage donation of hay to
farmers and ranchers in immediate need.

"Drought and severe weather conditions have depleted hay stocks
and grazing lands across the country," said Veneman. "This
approval provides immediate relief to livestock producers and encourages
donations of hay to producers who need immediate assistance."

The 18 approved states are: Arizona, Colorado, Georgia, Idaho,
Kansas, Minnesota, Montana, Nebraska, New Mexico, North Carolina, North
Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, Virginia
and Wyoming. State Farm Service Agency committees may limit the area
within the states if conditions do not warrant haying and grazing in all
areas.

USDA previously authorized counties in states most stricken by severe
weather conditions to be considered for haying and grazing, but approval
was on a county-by-county basis. Since May, over 300 counties in 15
states have been approved for haying and/or grazing. Today's
announcement makes CRP participants statewide in the 18 states eligible
if the state committee determines conditions warrant release without
waiting for county approval.

CRP participants must submit applications for individual approval to
their local FSA offices. Haying and grazing is authorized until Aug. 31,
2002, or until disaster conditions no longer exist, whichever comes
first. Land devoted to certain special practices will not be eligible
for haying and grazing because of environmental considerations.

CRP participants who are unaffected by disasters or do not own or
lease livestock can make their CRP acreage available for grazing or can
donate hay to those in need. USDA has developed a website for producers
to list information concerning the need for available hay. The website
address is: http://www.fsa.usda.gov
.

CRP annual rental payments will be reduced 25 percent to account for
the areas hayed or grazed unless the hay is donated. At least 50 percent
of the CRP acreage must be left unhayed and 25 percent left ungrazed.
Hay harvested from CRP acreage may not be sold.

CRP offers annual rental payments and cost-share assistance to
establish long-term, resource-conserving cover on eligible land. USDA
will monitor producers and regulate approvals to ensure the land is
safely hayed and grazed without damaging conservation covers.

USDA has other programs to assist drought stricken producers,
including emergency farm loans, federal crop insurance, the emergency
conservation program and the noninsured crop disaster assistance
program. For more information and eligibility requirements on USDA
disaster assistance, producers should contact their local FSA office or
visit FSA's website at: http://www.fsa.usda.gov.

USDA has monitored conditions through the spring and summer. In
addition to other USDA programs to mitigate the effects of drought and
excessive moisture, FSA released some CRP acreage for grazing on May 22,
2002, and for haying on July 2, 2002. However, conditions have not
substantially improved and in some cases continue to broaden.

2. What does this announcement do?

This announcement makes regions of the country eligible to hay or
graze their CRP acreage. The severity and extent of the damage is such
that FSA has determined there is no need for state and local offices to
justify approvals on a county-by-county basis.

USDA's Farm Service Agency has delegated to its state committees the
authority to limit the area within the state covered by this authority
if conditions do not warrant haying or grazing. Also, land devoted to
certain practices is not eligible.

5. How does this apply to other areas of the country?

Areas not covered by this announcement may seek haying or grazing
authority on a county-by-county basis if they have suffered a 40 percent
deviation in normal moisture. In these cases, FSA headquarters office
responds within one workday.

6. Are there other provisions?

To provide for the protection of wildlife, haying and grazing
participants must not hay or graze certain highly desirable
environmental acreage, such as filter strips, water ways and riparian
buffers. Participants will receive a payment reduction equal to 25
percent of their annual rental payment. http://www.usda.gov/news/releases/2002/07/0287.htm